Integrated Power Development Scheme (IPDS)

The full form of IPDS is Integrated Power Development Scheme. The Ministry of Power launched the Integrated Power Development Scheme (IPDS) on 3rd December 2014 to provide financial assistance against capital expenditure to Discoms (Distribution Companies). It aims to address the gaps in power sub-transmission, distribution network and metering in urban areas. The Discoms or power department can supplement their resources through the financial assistance provided under this scheme. 

IPDS will help to reduce the Aggregate Technical and Commercial (AT&C) losses, establish an IT-enabled energy accounting or auditing system, and improve billed energy based on metered electricity consumption and collection efficiency. It will enhance and strengthen the power transmission and submission networks.

IPDS tackles the challenges in the overall functioning of India's power sector. The nodal agency of IPDS is the Power Finance Corporation Limited, a Navratna Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Power.

Objectives of IPDS

• Power supplies for consumers 24x7.
• Reduction of losses in AT&C (Aggregate Technical and Commercial).
• Provide access to power to all households.

Components of IPDS

• Strengthening of distribution networks and sub-transmission in the urban areas.
• Metering of distribution transformers, consumers or feeders in the urban areas.
• IT enablement of the distribution sector and strengthening the distribution network under R-APDRP by carrying forward the R-APDRP approved outlay for IPDS.
• Schemes for IT enablement of balance urban towns and Enterprise Resource Planning (ERP) are also included under IPDS. The scope of IT enablement is extended to all 4041 towns according to Census 2011.
• Underground cabling to facilitate the additional demand of states and smart metering solutions to perform UDAY states and solar panels on government buildings with net metering.

Eligibility Criteria under IPDS

All Discoms are eligible under IPDS to receive financial assistance. All eligible Discoms under the IPDS include the state power departments (referred to as Utilities) and private sector Discoms.

Funding Pattern of IPDS

The following is the funding given under IPDS for Discoms:

• Government grant - 60% (85% for special category states)
• Additional grant linked to the achievement of milestones - 15% (5% for special category states).

The estimated cost of this scheme, which includes the components of strengthening distribution networks and sub-transmission and metering consumers in the urban areas, is Rs. 32,612 crore. The cost of Rs. 32,612 crore includes the requirement of Rs. 25,354 crore of budgetary support from the government for the implementation period of IPDS.

Latest Achievements under IPDS

As a part of Azadi ka Amrit Mahotsava, the Government of India launched a 50 kWp solar rooftop in Solan, Himachal Pradesh, on 19th June 2021 under the IPDS of the Union Ministry of Power. The 50 kWp rooftop solar plant will produce 165 kWh of electricity daily. It further reinforces the government’s ‘Go Green Initiative’ inbuilt under the Urban Distribution Scheme.

Rural India, deprived of electricity, is also included under the IPDS scheme with the vision of inclusivity. The Integrated Power Development Scheme (IPDS) is designed to ensure electricity for all and make India’s power sector at par with global standards.